LONDON, May 9 (Reuters) - European shares retreated on
Friday as a disappointing business update from leading telecoms
group Telefonica sobered the mood after a rally the
previous day.

The pan-European FTSEurofirst 300 index, which on
Thursday hit a 2014 peak of 1,359.07 points that marked its
highest level in around six years, was down 0.4 percent at
1,353.48 points by 1506 GMT.

Shares in Spain's Telefonica fell 2.7 percent after
the company posted a 23 percent fall in first quarter net
profits that missed market expectations.

Energy services group Petrofac slumped by 15.4
percent after it issued a profit warning.

Around two thirds of companies listed on the pan-European
STOXX Europe 600 index have posted first-quarter
updates so far, of which half have missed consensus earnings
forecasts, according to Thomson Reuters StarMine data.
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